Xerox 10-K 26 Feb 10 2009 FY Annual report Financial data

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues
Sales	$6,646	$8,325	$8,192
Service, outsourcing and rentals	7,820	8,485	8,214
Finance income	713	798	822
Total Revenues	15,179	17,608	17,228
Costs and Expenses
Cost of sales	4,395	5,519	5,254
Costs of service, outsourcing and rentals	4,488	4,929	4,707
Equipment financing interest	271	305	316
Research, development and engineering expenses	840	884	912
Selling, administrative and general expenses	4,149	4,534	4,312
Restructuring and asset impairment charges	(8)	429	(6)
Acquisition-related costs	72	0	0
Other expenses, net	345	1,087	265
Total Costs and Expenses	14,552	17,687	15,760
Income (Loss) before Income Taxes and Equity Income	627	(79)	1,468
Income tax expense (benefit)	152	(231)	400
Equity in net income of unconsolidated affiliates	41	113	97
Net Income	516	265	1,165
Less: Net income attributable to noncontrolling interests	31	35	30
Net Income Attributable to Xerox	$485	$230	$1,135
Basic Earnings per Share	0.56	0.26	1.21
Diluted Earnings per Share	0.55	0.26	1.19

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Assets
Cash and cash equivalents	$3,799	$1,229
Accounts receivable, net	1,702	2,184
Billed portion of finance receivables, net	226	254
Finance receivables, net	2,396	2,461
Inventories	900	1,232
Other current assets	708	790
Total current assets	9,731	8,150
Finance receivables due after one year, net	4,405	4,563
Equipment on operating leases, net	551	594
Land, buildings and equipment, net	1,309	1,419
Investments in affiliates, at equity	1,056	1,080
Intangible assets, net	598	610
Goodwill	3,422	3,182
Deferred tax assets, long-term	1,640	1,692
Other long-term assets	1,320	1,157
Total Assets	24,032	22,447
Liabilities and Equity
Short-term debt and current portion of long-term debt	988	1,610
Accounts payable	1,451	1,446
Accrued compensation and benefits costs	695	625
Other current liabilities	1,327	1,769
Total current liabilities	4,461	5,450
Long-term debt	8,276	6,774
Liability to subsidiary trust issuing preferred securities	649	648
Pension and other benefit liabilities	1,884	1,747
Post-retirement medical benefits	999	896
Other long-term liabilities	572	574
Total Liabilities	16,841	16,089
Common stock	871	866
Additional paid-in capital	2,493	2,447
Retained earnings	5,674	5,341
Accumulated other comprehensive loss	(1,988)	(2,416)
Xerox Shareholders' Equity	7,050	6,238
Noncontrolling interests	141	120
Total Equity	7,191	6,358
Total Liabilities and Equity	$24,032	$22,447
Shares of common stock issued	869,381	864,777
Shares of common stock outstanding	869,381	864,777

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash Flows from Operating Activities:
Net Income	$516	$265	$1,165
Adjustments required to reconcile net income to cash flows from operating activities:
Depreciation and amortization	698	669	656
Provision for receivables	289	199	131
Provision for inventory	52	115	66
Deferred tax expense (benefit)	120	(324)	224
Net gain on sales of businesses and assets	(16)	(21)	(7)
Undistributed equity in net income of unconsolidated affiliates	(25)	(53)	(60)
Stock-based compensation	85	85	89
Provision for litigation, net	0	781	0
Payments for securities litigation, net	(28)	(615)	0
Restructuring and asset impairment charges	(8)	429	(6)
Payments for restructurings	(270)	(131)	(235)
Contributions to pension benefit plans	(122)	(299)	(298)
Decrease (increase) in accounts receivable and billed portion of finance receivables	467	57	(79)
Decrease (increase) in inventories	319	(114)	(43)
Increase in equipment on operating leases	(267)	(331)	(331)
Decrease in finance receivables	248	164	119
Decrease (increase) in other current and long-term assets	129	(8)	130
Increase in accounts payable and accrued compensation	157	211	285
(Decrease) increase in other current and long-term liabilities	(100)	(174)	38
Net change in income tax assets and liabilities	(18)	(92)	73
Net change in derivative assets and liabilities	(56)	230	(10)
Other operating, net	38	(104)	(36)
Net cash provided by operating activities	2,208	939	1,871
Cash Flows from Investing Activities:
Cost of additions to land, buildings and equipment	(95)	(206)	(236)
Proceeds from sales of land, buildings and equipment	17	38	25
Cost of additions to internal use software	(98)	(129)	(123)
Acquisitions, net of cash acquired	(163)	(155)	(1,615)
Net change in escrow and other restricted investments	(6)	8	200
Other investing, net	2	3	137
Net cash used in investing activities	(343)	(441)	(1,612)
Cash Flows from Financing Activities:
Net payments on secured financings	(57)	(227)	(1,869)
Net proceeds on other debt	923	926	1,814
Common stock dividends	(149)	(154)	0
Proceeds from issuances of common stock	1	6	65
Excess tax benefits from stock-based compensation	0	2	22
Payments to acquire treasury stock, including fees	0	(812)	(632)
Repurchases related to stock-based compensation	(12)	(33)	0
Other financing	(14)	(19)	(19)
Net cash provided by (used in) financing activities	692	(311)	(619)
Effect of exchange rate changes on cash and cash equivalents	13	(57)	60
Increase (decrease) in cash and cash equivalents	2,570	130	(300)
Cash and cash equivalents at beginning of year	1,229	1,099	1,399
Cash and cash equivalents at end of year	$3,799	$1,229	$1,099

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)
In Millions	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]		AOCL (1) [Member]		Xerox Shareholders' Equity [Member]		Noncontrolling Interests [Member]		Total
Beginning Balance at Dec. 31, 2006	$956	$3,710	($141)	$4,202		($1,647)	[1]	$7,080		$108		$7,188
Net Income				1,135				1,135		30		1,165
Translation adjustments						501		501		1		502
Cumulative effect of change in accounting principles				(9)				(9)				(9)
Changes in defined benefit plans (2)						382	[2]	382	[2]			382	[2]
Other unrealized gains (losses)						(1)		(1)				(1)
Comprehensive Income (Loss)								2,008		31		2,039
Cash dividends declared on common stock (3)				(40)	[3]			(40)	[3]			(40)	[3]
Stock option and incentive plans, net	7	165						172				172
Payments to acquire treasury stock			(632)					(632)				(632)
Cancellation of treasury stock	(43)	(699)	742
Distributions to noncontrolling interests										(19)		(19)
Purchase of noncontrolling interests (4)										(17)	[4]	(17)	[4]
Ending Balance at Dec. 31, 2007	920	3,176	(31)	5,288		(765)	[1]	8,588		103		8,691
Net Income				230				230		35		265
Translation adjustments						(1,364)		(1,364)		(3)		(1,367)
Cumulative effect of change in accounting principles				(25)				(25)				(25)
Changes in defined benefit plans (2)						(286)	[2]	(286)	[2]			(286)	[2]
Other unrealized gains (losses)						(1)		(1)				(1)
Comprehensive Income (Loss)								(1,446)		32		(1,414)
Cash dividends declared on common stock (3)				(152)	[3]			(152)	[3]			(152)	[3]
Stock option and incentive plans, net	5	55						60				60
Payments to acquire treasury stock			(812)					(812)				(812)
Cancellation of treasury stock	(59)	(784)	843
Distributions to noncontrolling interests										(15)		(15)
Ending Balance at Dec. 31, 2008	866	2,447	0	5,341		(2,416)	[1]	6,238		120		6,358
Net Income				485				485		31		516
Translation adjustments						595		595		1		596
Changes in defined benefit plans (2)						(169)	[2]	(169)	[2]			(169)	[2]
Other unrealized gains (losses)						2		2				2
Comprehensive Income (Loss)								913		32		945
Cash dividends declared on common stock (3)				(152)	[3]			(152)	[3]			(152)	[3]
Stock option and incentive plans, net	5	67						72				72
Tax loss on stock option and incentive plans, net		(21)						(21)				(21)
Distributions to noncontrolling interests										(11)		(11)
Ending Balance at Dec. 31, 2009	$871	$2,493	$0	$5,674		($1,988)	[1]	$7,050		$141		$7,191
[1](1) Refer to Note 1 "Accumulated Other Comprehensive Loss (AOCL)" section for additional information
[2](2) Refer to Note 14 - Employee Benefit Plans for additional information.
[3](3) Cash dividends declared of $0.0425 in the fourth quarter 2007 and in each of the four quarters in 2008 and 2009.
[4](4) Represents purchase of De Lage Landen's 51% ownership interest in our lease finance joint venture in the Netherlands.

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Summary of Significant Accounting Policies	Note 1Summary of Significant Accounting Policies References herein to we, us, our, the Company, and Xerox refer to Xerox Corporation and its consolidated subsidiaries unless the context specifically requires otherwise. Description of Business and Basis of Presentation We are a technology and services enterprise and a leader in the global document market. We develop, manufacture, market, service and finance a complete range of document equipment, software, solutions and services. Basis of Consolidation The Consolidated Financial Statements include the accounts of Xerox Corporation and all of our controlled subsidiary companies. All significant intercompany accounts and transactions have been eliminated. Investments in business entities in which we do not have control, but we have the ability to exercise significant influence over operating and financial policies (generally 20% to 50% ownership) are accounted for using the equity method of accounting. Operating results of acquired businesses are included in the Consolidated Statements of Income from the date of acquisition. We consolidate variable interest entities if we are deemed to be the primary beneficiary of the entity. Operating results for variable interest entities in which we are determined to be the primary beneficiary are included in the Consolidated Statements of Income from the date such determination is made. For convenience and ease of reference, we refer to the financial statement caption Income (Loss) before Income Taxes and Equity Income as Pre-tax Income or Pre-tax Loss throughout the Notes to the Consolidated Financial Statements. In 2009, we changed the presentation of our financial statements for noncontrolling (minority) interests. Refer to Business Combinations and Noncontrolling Interests below for additional information. Use of Estimates The preparation of our Consolidated Financial Statements, in accordance with accounting principles generally accepted in the United States of America, requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are used for, but not limited to: (i)allocation of revenues and fair values in leases and other multiple element arrangements; (ii)accounting for residual values; (iii)economic lives of leased assets; (iv)allowance for doubtful accounts; (v)inventory valuation; (vi)restructuring and related charges; (vii)asset impairments; (viii)depreciable lives of assets; (ix)useful lives of intangible assets; (x)pension and post-retirement benefit plans; (xi)income tax reserves and valuation allowances; and (xii)contingency and litigation reserves. Future events and their effects cannot be predicted with certainty; accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our Consolidated Financial Statements will change as new events occur, as more experience is acquired, as additio

Segment Reporting

Segment Reporting
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Segment Reporting	Note 2Segment Reporting Our reportable segments are consistent with how we manage the business and view the markets we serve. Our reportable segments are Production, Office and Other. The Production and Office segments are centered on strategic product groups which share common technology, manufacturing and product platforms, as well as classes of customers. The Production segment includes black-and-white products which operate at speeds over 90 pages per minute (ppm) excluding 95 ppm with an embedded controller and color products which operate at speeds over 40 ppm excluding 50, 60 and 70 ppm products with an embedded controller.Products include the Xerox iGen3 and iGen4 digital color production press, Xerox Nuvera, DocuTech, DocuPrint and DocuColor families, as well as older technology light-lens products.These products are sold predominantly through direct sales channels to Fortune 1000, graphic arts, government, education and other public sector customers. The Office segment includes black-and-white products which operate at speeds up to 95 ppm and color devices up to 85 ppm.Products include our family of ColorQube, WorkCentre multifunction printers, Phaser desktop printers and digital multifunction printers., DocuColor color multifunction products, color laser, solid ink color printers and multifunction devices, monochrome laser desktop printers, digital and light-lens copiers and facsimile products and non-Xerox branded products with similar specifications. These products are sold through direct and indirect sales channels to global, national and mid-size commercial customers, as well as government, education and other public sector customers. The segment classified as Other includes several units, none of which met the thresholds for separate segment reporting.This group primarily includes Xerox Supplies Business Group (predominantly paper sales), Value-Added Services, Wide Format Systems, Xerox Technology Enterprises, royalty and licensing revenues, GIS network integration solutions and electronic presentation systems, equity net income and non-allocated Corporate items.Other segment profit (loss) includes the operating results from these entities, other less significant businesses, our equity income from Fuji Xerox, and certain costs which have not been allocated to the Production and Office segments, including non-financing interest, as well as other items included in Other expenses, net. Selected financial information for our Operating segments for each of the years ended December31, 2009, 2008 and 2007, respectively, was as follows: Production Office Other Total 2009(1) Revenues $ 4,287 $ 8,135 $ 2,044 $ 14,466 Finance income 258 441 14 713 Total Segment Revenues $ 4,545 $ 8,576 $ 2,058 $ 15,179 Interest expense $ 101 $ 165 $ 261 $ 527 Segment profit (loss) (2) $ 217 $ 835 $ (274 ) $ 778 Equity in net income of unconsolidated affiliates $ $ $ 41 $ 41 2008(1) Revenues

Acquisition

Acquisition
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Acquisition	Note 3Acquisitions Affiliated Computer Services, Inc. In September 2009, we entered into a definitive agreement to acquire Affiliated Computer Services, Inc. (ACS) in a cash and stock transaction. The acquisition closed on February 5, 2010, at which time 100% of the outstanding shares of ACS common stock were converted into a combination of 4.935 shares of Xerox common stock and $18.60 in cash for a combined value of $60.40 per share, or approximately $6.0 billion based on the closing price of Xerox common stock of $8.47 on date of closing. Approximately 489,800 thousand shares of common stock were issued to holders of ACS Class A and Class B common stock. Xerox assumed all outstanding ACS stock options at closing.Each assumed ACS option became exercisable for 7.085289 Xerox common shares for a total of approximately 96,700 thousand shares at a weighted average exercise price of $6.79 per option. The estimated fair value associated with the Xerox options issued in exchange for the ACS options was approximately $222 based on a Black-Scholes valuation model. Approximately $168 of the estimated fair value is expected to be recorded as part of the acquisition fair value and $54 will be expensed over the remaining vesting period which is estimated to be approximately 3.9 years. As part of the closing, we repaid $1.7 billion of ACSs debt and assumed an additional $0.6 billion.We also issued convertible preferred stock with a liquidation value of $300 to ACSs Class B shareholder (see Note 17 Shareholders Equity for further information).The cash portion of the acquisition, as well as the repayment of ACSs debt, was funded through a combination of cash-on-hand, borrowing under our existing Credit Facility and the issuance of senior notes in the capital markets. (Refer to Note 11 Debt for further information). ACS provides business process outsourcing (BPO) and information technology (IT) services and solutions to commercial and government clients worldwide.ACS delivers a full range of BPO and IT services, as well as end-to-end solutions to the public and private sectors and supports a variety of industries including education, energy, financial, government, healthcare, retail and transportation.ACSs revenues for the calendar year ended December 31, 2009 were $6.6 billion and they employed 78,000 people and operated in over 100 countries. All information regarding the fair values of the assets acquired and liabilities assumed, including assets and liabilities arising from contingencies, is not yet available. However, the purchase price is expected to be primarily allocated to intangible assets and goodwill based on third-party valuations and managements estimates which have not yet been finalized. The unaudited pro forma results presented below include the effects of the ACS acquisition as if it had been consummated as of January 1, 2008. The pro-forma results include the amortization associated with a preliminary estimate for the acquired intangible assets and interest expense associated with debt used to fund the acquisition. However, pro forma results do not include any anticipated synergies or other expected benefits of the

Receivables, Net

Receivables, Net
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Receivables, Net	Note 4Receivables, Net Finance Receivables Finance receivables result from installment arrangements and sales-type leases arising from the marketing of our equipment. These receivables are typically collateralized by a security interest in the underlying assets. Finance receivables, net at December31, 2009 and 2008 were as follows: 2009 2008 Gross receivables $ 8,427 $ 8,718 Unearned income (1,197 ) (1,273 ) Residual values 19 31 Allowance for doubtful accounts (222 ) (198 ) Finance receivables, net $ 7,027 $ 7,278 Less: Billed portion of finance receivables, net (226 ) (254 ) Less: Current portion of finance receivables not billed, net (2,396 ) (2,461 ) Finance Receivables Due After One Year, net $ 4,405 $ 4,563 Contractual maturities of our gross finance receivables as of December31, 2009 were as follows (including those already billed of $226): 2010 2011 2012 2013 2014 Thereafter Total $ 3,191 $ 2,334 $ 1,622 $ 910 $ 327 $ 43 $ 8,427 Accounts Receivable Sales Arrangements We have facilities in the U.S., Canada and several countries in Europe that enable us to sell, on an on-going basis, certain accounts receivable without recourse to third-parties. The accounts receivables sold are generally short-term trade receivables with a payment due date of less than 60 days. In some of the agreements we continue to service the sold receivables and hold beneficial interests.When applicable, a servicing liability is recorded for the estimated fair value of the servicing. Beneficial interests are included in the caption Other current assets in the accompanying Consolidated Balance Sheets and are recorded at estimated fair value. The amounts associated with the servicing liability and beneficial interests were not material at December 31, 2009 and 2008, respectively. Accounts receivables sales for the three years ended December31, 2009 were as follows: 2009 2008 2007 Accounts receivables sales $ 1,566 $ 717 $ 326 Fees associated with sales 13 4 2 Estimated impact of sales on operating cash flows 309 51 147

Inventories and Equipment on Op

Inventories and Equipment on Operating Leases, Net
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Inventories	Note 5Inventories and Equipment on Operating Leases, Net Inventories at December31, 2009 and 2008 were as follows: 2009 2008 Finished goods $ 772 $ 1,044 Work-in-process 43 80 Raw materials 85 108 Total Inventories $ 900 $ 1,232 Cost of sales in 2008 included a charge of $39 associated with an Office segment product line equipment and residual value write-off. The write-off was the result of a 2008 change in strategy reflecting our decision to discontinue the remanufacture of end-of-lease returned inventory from a certain Office segment product line following an assessment of the current and expected market for these products. The transfer of equipment from our inventories to equipment subject to an operating lease is presented in our Consolidated Statements of Cash Flows in the operating activities section as a non-cash adjustment. Equipment on operating leases and similar arrangements consists of our equipment rented to customers and depreciated to estimated salvage value at the end of the lease term. We recorded $52, $115 and $66 in inventory write-down charges for the years ended December31, 2009, 2008 and 2007, respectively. Equipment on operating leases and the related accumulated depreciation at December31, 2009 and 2008 were as follows: 2009 2008 Equipment on operating leases $ 1,583 $ 1,507 Accumulated depreciation (1,032 ) (913 ) Equipment on Operating Leases, net $ 551 $ 594 Depreciable lives generally vary from three to four years consistent with our planned and historical usage of the equipment subject to operating leases. Depreciation and obsolescence expense for equipment on operating leases was $329, $298 and $269 for the years ended December31, 2009, 2008 and 2007, respectively. Our equipment operating lease terms vary, generally from 12 to 36 months. Scheduled minimum future rental revenues on operating leases with original terms of one year or longer are: 2010 2011 2012 2013 2014 Thereafter $ 385 $ 281 $ 181 $ 94 $ 46 $ 45 Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum contracted amounts, for the years ended December31, 2009, 2008 and 2007 amounted to $125, $117 and $117, respectively.

Land, Buildings and Equipment,

Land, Buildings and Equipment, Net
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Land, Buildings and Equipment, Net	Note 6Land, Buildings and Equipment, Net Land, buildings and equipment, net at December31, 2009 and 2008 were as follows: Estimated UsefulLives (Years) 2009 2008 Land $ 45 $ 45 Buildings and building equipment 25to50 1,192 1,156 Leasehold improvements Varies 328 372 Plant machinery 5 to 12 1,686 1,597 Office furniture and equipment 3 to 15 994 973 Other 4 to 20 100 100 Construction in progress 33 95 Subtotal 4,378 4,338 Accumulated depreciation (3,069 ) (2,919 ) Land, Buildings and Equipment, net $ 1,309 $ 1,419 Depreciation expense and operating lease rent expense for the years ended December 31, 2009, 2008 and 2007 were as follows: 2009 2008 2007 Depreciation expense $ 247 $ 257 $ 262 Operating lease rent expense (1) $ 267 $ 252 $ 286 (1) We lease certain land, buildings and equipment, substantially all of which are accounted for as operating leases. Future minimum operating lease commitments that have initial or remaining non-cancelable lease terms in excess of one year at December31, 2009 were as follows: 2010 2011 2012 2013 2014 Thereafter $ 224 $ 181 $ 128 $ 99 $ 70 $ 80 We have an information management contract with Electronic Data Systems Corp. (EDS) through March 2014.Services to be provided under this contract include support for European and Brazilian mainframe system processing and application maintenance through mid-2010, as well as workplace and service desk and voice and data network management through March 2014. There are no minimum payments required under this contract. We can terminate the contract for convenience with six months notice, as defined in the contract, with no termination fee and with payment to EDS for costs incurred as of the termination date. Should we terminate the contract for convenience, we have an option to purchase the assets placed in service under the EDS contract. Payments to EDS, which are primarily recorded in selling, administrative and general expenses, were $198, $279 and $294 for the years ended December31, 2009, 2008 and 2007, respectively. During 2009 we terminated several agreements with EDS for information management services and entered into new agreements for similar services with several providers.Services to be provided under these contracts include support for data network transport; mainframe application processing, development and support; and mid-range applications processing and support. These contracts have various terms through 2015. Some of the contracts require minimum payments and include termination penalties. Payments for information management services, which are primarily recorded in selling, administrative and general expenses were $26 for the year ended December 31, 2009.

Investments in Affiliates, at E

Investments in Affiliates, at Equity
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Investments in Affiliates, at Equity	Note 7Investments in Affiliates, at Equity Investments in corporate joint ventures and other companies in which we generally have a 20% to 50% ownership interest at December31, 2009 and 2008 were as follows: 2009 2008 Fuji Xerox $ 998 $ 1,028 All other equity investments 58 52 Investments in Affiliates, at Equity $ 1,056 $ 1,080 Our equity in net income of our unconsolidated affiliates for the three years ended December31, 2009 was as follows: 2009 2008 2007 Fuji Xerox $ 30 $ 101 $ 89 Other investments 11 12 8 Total Equity in Unconsolidated Affiliates $ 41 $ 113 $ 97 Fuji Xerox Fuji Xerox is headquartered in Tokyo and operates in Japan, China, Australia, New Zealand and other areas of the Pacific Rim. Our investment in Fuji Xerox of $998 at December31, 2009, differs from our implied 25% interest in the underlying net assets, or $1,108, due primarily to our deferral of gains resulting from sales of assets by us to Fuji Xerox, partially offset by goodwill related to the Fuji Xerox investment established at the time we acquired our remaining 20% of Xerox Limited from The Rank Group plc. Equity in net income of Fuji Xerox is affected by certain adjustments to reflect the deferral of profit associated with intercompany sales. These adjustments may result in recorded equity income that is different than that implied by our 25% ownership interest. Equity income for 2009 and 2008 includes after-tax restructuring charges of $46 and $16, respectively, primarily reflecting employee related costs as part of Fuji Xeroxs continued cost-reduction actions to improve its competitive position. Yen/U.S. Dollar exchange rates used to translate are as follows: Exchange Basis 2009 2008 2007 Summary of Operations Weighted Average Rate 93.51 103.31 117.53 Balance Sheet Year-End Rate 92.46 90.28 112.55 Condensed financial data of Fuji Xerox for the three calendar years ended December31, 2009 was as follows: 2009 2008 2007 Summary of Operations Revenues $ 9,998 $ 11,190 $ 10,218 Costs and expenses 9,781 10,451 9,565 Income before income taxes 217 739 653 Income tax expense 67 287 252 Net Income $ 150 $ 452 $ 401 Less: Net income attributable to noncontrolling interests 1 7 6 Net Income Attributable to Fuji Xerox $ 149 $ 445 $ 395 Balance Sheet Assets: Current assets $ 4,111 $ 4,734 $ 4,242 Long-term assets 5,457 5,470 4,639 Total Assets $ 9,568 $ 10,204 $ 8,881 Liabilities and Equity: Current liabilities $ 2,643 $ 3,534 $ 3,322 Long-term debt 1,368 996 900 Other long-term liabilities 1,104 1,095 746 Fuji Xerox Shareholders equity 4,434 4,556 3,888 Noncontrolling interests 19

Goodwill And Intangible Assets,

Goodwill And Intangible Assets, Net
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Goodwill and Intangible Assets, Net	Note 8Goodwill and Intangible Assets, Net Goodwill The following table presents the changes in the carrying amount of goodwill, by reportable segment, for the three years ended December31, 2009: Production Office Other Total Balance at December31, 2006 (1) $ 892 $ 986 $ 146 $ 2,024 Foreign currency translation 21 17 38 Acquisition of GIS 1,218 105 1,323 Acquisition of Advectis, Inc. 26 26 GIS Acquisitions 30 3 33 Other 4 4 Balance at December31, 2007 $ 913 $ 2,251 $ 284 $ 3,448 Foreign currency translation (233 ) (161 ) (1 ) (395 ) Acquisition of Veenman B.V. 44 44 GIS acquisitions 73 73 Purchase Price allocation adjustment GIS (2) 120 (108 ) 12 Balance at December31, 2008 $ 680 $ 2,327 $ 175 $ 3,182 Foreign currency translation 71 50 1 122 GIS acquisitions 118 118 Balance at December 31, 2009 $ 751 $ 2,495 $ 176 $ 3,422 (1) Includes adjustment of $110 from the Other segment to the Office segment related to the goodwill associated with our 1998 acquisition of XL Connect Solutions, Inc. (2) In 2008, we finalized the GIS purchase price allocation. As a result, the $108 of goodwill reflected in our Other segment in 2007 was reallocated to our Office segment. This adjustment aligned goodwill to the reporting unit benefiting from the synergies of the purchase. Intangible Assets, Net Intangible assets primarily relate to the Office operating segment. Intangible assets were comprised of the following as of December31, 2009 and 2008: December31, 2009 December31, 2008 Weighted Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Customer base 14years $ 525 $ 198 $ 327 $ 492 $ 155 $ 337 Distribution network 25 years 123 49 74 123 44 79 Trademarks 20 years 210 25 185 191 15 176 Technology, patents and non-compete 6 years 40 28 12 40 22 18 Total Intangible Assets $ 898 $ 300 $ 598 $ 846 $ 236 $ 610 Amortization expense related to intangible assets was $64, $58, and $46 for the years ended December31, 2009, 2008 and 2007, respectively, and excluding the impact of additional acquisitions, is expected to approximate $64 annually from 2010 through 2012 and $55 annually through 2014. Amortization expense is primarily recorded in Other expenses, net with the exception of amortization expense associated with licensed technology, which is recorded in Cost of sales.

Restructuring and Asset Impairm

Restructuring and Asset Impairment Charges
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Restructuring Programs	Note 9Restructuring and Asset Impairment Charges The net restructuring and asset impairment (credits) charges in the Consolidated Statements of Income totaled $(8), $429 and $(6) in 2009, 2008 and 2007, respectively. Detailed information related to restructuring program activity during the three years ended December31, 2009 is outlined below: Restructuring Activity Severanceand Related Costs Lease Cancellationand Other Costs Asset Impairments(1) Total Balance December31, 2006 $ 293 $ 44 $ $ 337 Restructuring provision 27 7 1 35 Reversals of prior accruals (38 ) (3 ) (41 ) Net current year charges(2) (11 ) 4 1 (6 ) Charges against reserve and currency (211 ) (10 ) (1 ) (222 ) Balance December31, 2007 $ 71 $ 38 $ $ 109 Restructuring provision 363 20 53 436 Reversals of prior accruals (6 ) (1 ) (7 ) Net current year charges(2) 357 19 53 429 Charges against reserve and currency (108 ) (25 ) (53 ) (186 ) Balance December31, 2008 $ 320 $ 32 $ $ 352 Restructuring provision 28 9 37 Reversals of prior accruals (39 ) (6 ) (45 ) Net current year charges(2) (11 ) 3 (8 ) Charges against reserve and currency (255 ) (15 ) (270 ) Balance December31, 2009(3) $ 54 $ 20 $ $ 74 (1) Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision. (2) Represents amount recognized within the Consolidated Statements of Income for the years shown. (3) We expect to utilize the majority of the remaining December31, 2009 restructuring balance in 2010. The following table summarizes the reconciliation to the Consolidated Statements of Cash Flows: Year Ended December31, 2009 2008 2007 Charges to reserve $ (270 ) $ (186 ) $ (222 ) Asset impairments 53 1 Effects of foreign currency and other non-cash items 2 (14 ) Cash Payments for Restructurings $ (270 ) $ (131 ) $ (235 ) The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment for the three years ended December31, 2009: 2009 2008 2007 Production $ (4 ) $ 190 $ (6 ) Office (3 ) 200 3 Other (1 ) 39 (3 ) Total Net Restructuring Charges $ (8 ) $ 429 $ (6 ) Over the past several years, we have engaged in a series of restructuring programs related to downsizing our employee base, exiting certain activities, outsourcing certain internal functions and engaging in other actions designed to reduce our cost structure and improve productivity. These initiatives primarily include severance actions an

Supplementary Financial Informa

Supplementary Financial Information
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Other Assets	Note 10Supplementary Financial Information The components of other current assets at December31, 2009 and 2008 were as follows: 2009 2008 Other Current Assets Deferred taxes $ 290 $ 305 Restricted cash 31 20 Prepaid expenses 111 119 Financial derivative instruments 16 39 Advances and deposits 19 26 Income taxes receivable 38 42 Other 203 239 Total Other Current Assets $ 708 $ 790 The components of other long-term assets at December31, 2009 and 2008 were as follows: 2009 2008 Other Long-term Assets Prepaid pension costs $ 155 $ 61 Net investment in discontinued operations (1) 240 259 Internal use software, net 354 288 Restricted cash 258 183 Debt issuance costs, net 62 48 Financial derivative instruments 10 53 Other 241 265 Total Other Long-term Assets $ 1,320 $ 1,157 (1) At December31, 2009, our net investment in discontinued operations primarily consists of a $265 performance-based instrument relating to the 1997 sale of The Resolution Group (TRG) net of remaining net liabilities associated with our discontinued operations of $25. The recovery of the performance-based instrument is dependent on the sufficiency of TRGs available cash flows, as guaranteed by TRGs ultimate parent, which are expected to be recovered in annual cash distributions through 2017.
Other Liabilities	Note 10Supplementary Financial Information The components of other current liabilities at December31, 2009 and 2008 were as follows: 2009 2008 Other Current Liabilities Income taxes payable $ 27 $ 47 Other taxes payable 161 173 Interest payable 114 141 Restructuring reserves 64 325 Unearned income 201 203 Financial derivative instruments 15 134 Product warranties 19 25 Dividends payable 41 38 Distributor and reseller rebates/commissions 127 131 Other 558 552 Total Other Current Liabilities $ 1,327 $ 1,769 The components of other long-term liabilities at December31, 2009 and 2008 were as follows: 2009 2008 Other Long-term Liabilities Deferred and other tax liabilities $ 167 $ 182 Financial derivative instruments 9 Environmental reserves 23 29 Restructuring reserves 10 27 Other 363 336 Total Other Long-term Liabilities $ 572 $ 574

Debt

Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Debt	Note 11 Debt Short-term borrowings at December31, 2009 and 2008 were as follows: 2009 2008 Current maturities of long-term debt $ 988 $ 1,549 Notes payable 7 Italy Credit Facility due 2009 54 Total Short-term Debt $ 988 $ 1,610 We classify our debt based on the contractual maturity dates of the underlying debt instruments or as of the earliest put date available to the debt holders. We defer costs associated with debt issuance over the applicable term, or to the first put date in the case of convertible debt or debt with a put feature. These costs are amortized as interest expense in our Consolidated Statements of Income. Long-term debt at December31, 2009 and 2008 was as follows: WeightedAverage InterestRatesat December31,2009(3) 2009 2008 U.S. Operations Xerox Corporation Euro Senior Notes due 2009 % $ $ 317 Senior Notes due 2009 % 583 Floating Senior Notes due 2009 % 150 Senior Notes due 2010 7.13 % 700 700 Notes due 2011 0.08 % 1 1 Notes due 2011 7.01 % 50 50 Senior Notes due 2011 6.59 % 750 750 Credit Facility due 2012 % 246 Senior Notes due 2012 5.59 % 1,100 1,100 Senior Notes due 2013 5.65 % 400 400 Senior Notes due 2013 7.63 % 550 550 Convertible Notes due 2014 9.00 % 19 19 Senior Notes due 2014 8.25 % 750 Senior Notes due 2015 4.25 % 1,000 Notes due 2016 7.20 % 250 250 Senior Notes due 2016 6.48 % 700 700 Senior Notes due 2017 6.83 % 500 500 Senior Notes due 2018 6.37 % 1,000 1,000 Senior Notes due 2019 5.63 % 650 Zero Coupon Notes due 2022 % 433 Zero Coupon Notes due 2023 5.41 % 267 253 Senior Notes due 2039 6.75 % 350 Subtotal $ 9,037 $ 8,002 Xerox Credit Corporation Notes due 2013 6.42 % 10 10 Notes due 2014 6.06 % 50 50 Subtotal $ 60 $ 60 Other U.S. Operations Borrowings secured by finance receivables (1) 5.87 % 2 56 Borrowings secured by other assets 11.35 % 5 6 Subtotal $ 7 $ 62 Total U.S. Operations $ 9,104 $ 8,124 International Operations Other debt due 2009-2010 2.89 % $ 18 $ 16 Total International Operations $ 18 $ 16 Principal Debt Balance 9,122 8,140 Unamortized discount (11 ) (6 ) Fair value adjustments (2) 153 189 Total Debt $ 9,264 $ 8,323 Less: current maturities (988 ) (1,549 ) Total Long-term Debt $ 8,276 $ 6,774 (1) As of December 31, 2009 and 2008, the associat

Liability to Subsidiary Trust I

Liability to Subsidiary Trust Issuing Preferred Securities
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Liability to Subsidiary Trust Issuing Preferred Securities	Note 12Liability to Subsidiary Trust Issuing Preferred Securities The Liability to Subsidiary Trust Issuing Preferred Securities included in our Consolidated Balance Sheets of $649 and $648 as of December31, 2009 and 2008, respectively, reflects our obligations to Xerox Capital Trust I (Trust I) as a result of their loans to us from proceeds related to their issuance of preferred securities. This subsidiary is not consolidated in our financial statements because we are not the primary beneficiary of the trust. In 1997, Trust I issued 650thousand of 8.0% preferred securities (the Preferred Securities) to investors for $644 ($650 liquidation value) and 20,103 shares of common securities to us for $20. With the proceeds from these securities, Trust I purchased $670 principal amount of 8.0% Junior Subordinated Debentures due 2027 of the Company (the Debentures). The Debentures represent all of the assets of Trust I. On a consolidated basis, we received net proceeds of $637 which was net of fees and discounts of $13. Interest expense, together with the amortization of debt issuance costs and discounts, was $54 in 2009, 2008 and 2007. We have guaranteed, on a subordinated basis, distributions and other payments due on the Preferred Securities. The guarantee, our obligations under the Debentures, the indenture pursuant to which the Debentures were issued and our obligations under the Amended and Restated Declaration of Trust governing the trust, taken together, provide a full and unconditional guarantee of amounts due on the Preferred Securities. The Preferred Securities accrue and pay cash distributions semiannually at a rate of 8%per year of the stated liquidation amount of one thousand dollars per Preferred Security. The Preferred Securities are mandatorily redeemable upon the maturity of the Debentures on February1, 2027, or earlier to the extent of any redemption by us of any Debentures. The redemption price in either such case will be one thousand dollars per share plus accrued and unpaid distributions to the date fixed for redemption.

Financial Instruments

Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Derivative Instruments and Hedging Activities	Note 13Financial Instruments We are exposed to market risk from changes in foreign currency exchange rates and interest rates, which could affect operating results, financial position and cash flows. We manage our exposure to these market risks through our regular operating and financing activities and, when appropriate, through the use of derivative financial instruments. These derivative financial instruments are utilized to hedge economic exposures, as well as to reduce earnings and cash flow volatility resulting from shifts in market rates. We enter into limited types of derivative contracts, including interest rate swap agreements, foreign currency spot, forward and swap contracts and net purchased foreign currency options to manage interest rate and foreign currency exposures. Our primary foreign currency market exposures include the Japanese Yen, Euro, and British Pound Sterling. The fair market values of all our derivative contracts change with fluctuations in interest rates and/or currency rates and are designed so that any changes in their values are offset by changes in the values of the underlying exposures. Derivative financial instruments are held solely as risk management tools and not for trading or speculative purposes. We are required to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. As permitted, certain of these derivative contracts have been designated for hedge accounting treatment. Certain of our derivatives that do not qualify for hedge accounting are effective as economic hedges. These derivative contracts are likewise required to be recognized each period at fair value and therefore do result in some level of volatility. The level of volatility will vary with the type and amount of derivative hedges outstanding, as well as fluctuations in the currency and interest rate market during the period. The related cash flow impacts of all of our derivative activities are reflected as cash flows from operating activities. By their nature all derivative instruments involve, to varying degrees, elements of market and credit risk. The market risk associated with these instruments resulting from currency exchange and interest rate movements is expected to offset the market risk of the underlying transactions, assets and liabilities being hedged. We do not believe there is significant risk of loss in the event of non-performance by the counterparties associated with these instruments because these transactions are executed with a diversified group of major financial institutions. Further, our policy is to deal with counterparties having a minimum investment grade or better credit rating. Credit risk is managed through the continuous monitoring of exposures to such counterparties. Interest Rate Risk Management We use interest rate swap agreements to manage our interest rate exposure and to achieve a desired proportion of variable and fixed rate debt. These derivatives may be designated as fair value hedges or cash flow hedges depending on the nature of the risk being hedged. Fair Value Hedges For derivative instruments that are designated and qualify as
Fair Value of Other Assets & Liabilities Not Measured at Fair Value on a Recurring Basis	Note 13Financial Instruments Summary of Other Financial Assets Liabilities Not Measured at Fair Value on a Recurring Basis The estimated fair values of our other financial assets and liabilities not measured at fair value on a recurring basis at December31, 2009 and 2008 were as follows: 2009 2008 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 3,799 $ 3,799 $ 1,229 $ 1,229 Accounts receivable, net 1,702 1,702 2,184 2,184 Short-term debt 988 1,004 1,610 1,593 Long-term debt 8,276 8,569 6,774 5,918 Liability to subsidiary trust issuing preferred securities 649 814 648 555 The fair value amounts for Cash and cash equivalents and Accounts receivable, net approximate carrying amounts due to the short maturities of these instruments. The fair value of Short and Long-term debt, as well as our Liability to subsidiary trust issuing preferred securities, was estimated based on quoted market prices for publicly traded securities or on the current rates offered to us for debt of similar maturities. The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at such date.

Employee Benefit Plans

Employee Benefit Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Employee Benefit Plans	Note 14 Employee Benefit Plans We sponsor numerous pension and other post-retirement benefit plans, primarily retiree health, in our domestic and international operations. December31 is the measurement date for all of our other post-retirement benefit plans. Refer to Note 1 - New Accounting Standards and Accounting Changes section for additional information regarding recent accounting changes affecting our benefit plans. Pension Benefits Retiree Health 2009 2008 2009 2008 Change in Benefit Obligation: Benefit obligation, January1 $ 8,495 $ 10,458 $ 1,002 $ 1,501 Service cost 173 209 7 14 Interest cost 508 (5 ) 60 84 Plan participants contributions 9 13 36 31 Plan amendments 4 1 1 (219 ) Actuarial loss (gain) 209 (550 ) 124 (251 ) Acquisitions 1 20 Currency exchange rate changes 373 (1,090 ) 15 (23 ) Curtailments 3 Benefits paid/settlements (578 ) (657 ) (143 ) (135 ) Other (1) 93 Benefit obligation, December31 $ 9,194 $ 8,495 $ 1,102 $ 1,002 Change in Plan Assets: Fair value of plan assets, January1 $ 6,923 $ 9,805 $ $ Actual return on plan assets 720 (1,527 ) Employer contribution 122 299 107 105 Plan participants contributions 9 13 36 30 Acquisitions 20 Currency exchange rate changes 349 (1,049 ) Benefits paid/settlements (578 ) (657 ) (143 ) (135 ) Other (1)(3) 16 19 Fair value of plan assets, December31 $ 7,561 $ 6,923 $ $ Net funded status at December31(2) $ (1,633 ) $ (1,572 ) $ (1,102 ) $ (1,002 ) Amounts recognized in the Consolidated Balance Sheets: Other long-term assets $ 155 $ 61 $ $ Accrued compensation and benefit costs (47 ) (48 ) (103 ) (106 ) Pension and other benefit liabilities (1,741 ) (1,585 ) Post-retirement medical benefits (999 ) (896 ) Net Amounts Recognized $ (1,633 ) $ (1,572 ) $ (1,102 ) $ (1,002 ) (1) 2008 Other reflects adjustments associated with the change in measurement dates for several European countries as required by ASC Topic 715-30-35. (2) Includes under-funded and non-funded plans. (3) 2009 activity represents opening balance adjustment of $16. Benefit plans pre-tax amounts recognized in Accumulated other comprehensive (income) loss: Pension Benefits Retiree Health 2009 2008 2009 2008 Net actuarial loss (gain) $ 1,834 $ 1,818 $ 40 $ (85 ) Prior service (credit) cost (169 )

Income and Other Taxes

Income and Other Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Income and Other Taxes	Note 15Income and Other Taxes Income (loss) before income taxes for the three years ended December31, 2009 was as follows: 2009 2008 2007 Domestic income (loss) $ 45 $ (622 ) $ 691 Foreign income 582 543 777 Income (Loss) Before Income Taxes $ 627 $ (79 ) $ 1,468 Provisions (benefits) for income taxes for the three years ended December31, 2009 was as follows: 2009 2008 2007 Federal income taxes Current $ (50 ) $ (26 ) $ 30 Deferred 109 (285 ) 92 Foreign income taxes Current 84 118 144 Deferred 11 4 120 State income taxes Current (2 ) 1 2 Deferred (43 ) 12 Total Provision (Benefits) $ 152 $ (231 ) $ 400 A reconciliation of the U.S. federal statutory income tax rate to the consolidated effective income tax rate for the three years ended December31, 2009 was as follows: 2009 2008 2007 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Nondeductible expenses 3.2 (19.5 ) 0.9 Effect of tax law changes 16.1 1.1 Change in valuation allowance for deferred tax assets (1.7 ) (21.0 ) 0.9 State taxes, net of federal benefit (0.2 ) 36.7 1.2 Audit and other tax return adjustments (8.7 ) 84.4 (4.1 ) Tax-exempt income (0.5 ) 8.5 (0.6 ) Other foreign, including earnings taxed at different rates (3.7 ) 148.9 (7.3 ) Other 0.8 3.3 0.1 Effective Income Tax Rate 24.2 % 292.4 % 27.2 % On a consolidated basis, we paid a total of $78, $194, and $104 in income taxes to federal, foreign and state jurisdictions during the three years ended December 31, 2009, 2008 and 2007, respectively. Total income tax expense (benefit) for the three years ended December31, 2009 was allocated as follows: 2009 2008 2007 Pre-tax income $ 152 $ (231 ) $ 400 Common shareholders equity: Changes in defined benefit plans (61 ) (183 ) 222 Stock option and incentive plans, net 21 (2 ) (22 ) Translation adjustments and other (13 ) 10 24 Total Income Tax Expense (Benefit) $ 99 $ (406 ) $ 624 Unrecognized Tax Benefits and Audit Resolutions Due to the extensive geographical scope of our operations, we are subject to ongoing tax examinations in numerous jurisdictions. Accordingly, we may record incremental tax expense based upon the more-likely-than-not outcomes of any uncertain tax positions. In addition, when applicable, we adjust the previously recorded tax expense to reflect examination results when the position is effectively settled. Our ongoing assessments of the more-likely-than-not outcomes of the examinations and related tax positions require judgment and can increase or decrease our effective tax rate, as well as impact our

Contingencies

Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Contingencies	Note 16Contingencies Brazil Tax and Labor Contingencies Our Brazilian operations are involved in various litigation matters and have received or been the subject of numerous governmental assessments related to indirect and other taxes, as well as disputes associated with former employees and contract labor. The tax matters, which comprise a significant portion of the total contingencies, principally relate to claims for taxes on the internal transfer of inventory, municipal service taxes on rentals and gross revenue taxes. We are disputing these tax matters and intend to vigorously defend our position. Based on the opinion of legal counsel and current reserves for those matters deemed probable of loss, we do not believe that the ultimate resolution of these matters will materially impact our results of operations, financial position or cash flows. The labor matters principally relate to claims made by former employees and contract labor for the equivalent payment of all social security and other related labor benefits, as well as consequential tax claims, as if they were regular employees. As of December31, 2009, the total amounts related to the unreserved portion of the tax and labor contingencies, inclusive of any related interest, amounted to approximately $1,225, with the increase from December31, 2008 balance of approximately $839 primarily related to currency and current year interest indexation. In connection with the above proceedings, customary local regulations may require us to make escrow cash deposits or post other security of up to half of the total amount in dispute. As of December31, 2009 we had $240 of escrow cash deposits for matters we are disputing and there are liens on certain Brazilian assets with a net book value of $19 and additional letters of credit of approximately $137. Generally, any escrowed amounts would be refundable and any liens would be removed to the extent the matters are resolved in our favor. We routinely assess all these matters as to probability of ultimately incurring a liability against our Brazilian operations and record our best estimate of the ultimate loss in situations where we assess the likelihood of an ultimate loss as probable. Legal Matters As more fully discussed below, we are involved in a variety of claims, lawsuits, investigations and proceedings concerning securities law, intellectual property law, environmental law, employment law and the Employee Retirement Income Security Act (ERISA).We determine whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated.We assess our potential liability by analyzing our litigation and regulatory matters using available information.We develop our views on estimated losses in consultation with outside counsel handling our defense in these matters, which involves an analysis of potential results, assuming a combination of litigation and settlement strategies.Should developments in any of these matters cause a change in our determination as to an unfavorable outcome and result in the need to recognize a material accrual, or should any of these matters resul
Guarantees	Note 16Contingencies Other Contingencies Guarantees, Indemnifications and Warranty Liabilities Guarantees and claims arise during the ordinary course of business from relationships with suppliers, customers and nonconsolidated affiliates when the Company undertakes an obligation to guarantee the performance of others if specified triggering events occur. Nonperformance under a contract could trigger an obligation of the Company. These potential claims include actions based upon alleged exposures to products, real estate, intellectual property such as patents, environmental matters, and other indemnifications. The ultimate effect on future financial results is not subject to reasonable estimation because considerable uncertainty exists as to the final outcome of these claims. However, while the ultimate liabilities resulting from such claims may be significant to results of operations in the period recognized, management does not anticipate they will have a material adverse effect on the Companys consolidated financial position or liquidity. As of December31, 2009, we have accrued our estimate of liability incurred under our indemnification arrangements and guarantees. Indemnifications Provided as Part of Contracts and Agreements We are a party to the following types of agreements pursuant to which we may be obligated to indemnify the other party with respect to certain matters: Contracts that we entered into for the sale or purchase of businesses or real estate assets, under which we customarily agree to hold the other party harmless against losses arising from a breach of representations and covenants, including obligations to pay rent. Typically, these relate to such matters as adequate title to assets sold, intellectual property rights, specified environmental matters and certain income taxes arising prior to the date of acquisition. Guarantees on behalf of our subsidiaries with respect to real estate leases. These lease guarantees may remain in effect subsequent to the sale of the subsidiary. Agreements to indemnify various service providers, trustees and bank agents from any third party claims related to their performance on our behalf, with the exception of claims that result from third-partys own willful misconduct or gross negligence. Guarantees of our performance in certain sales and services contracts to our customers and indirectly the performance of third parties with whom we have subcontracted for their services. This includes indemnifications to customers for losses that may be sustained as a result of the use of our equipment at a customers location. In each of these circumstances, our payment is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow us to challenge the other partys claims. In the case of lease guarantees, we may contest the liabilities asserted under the lease. Further, our obligations under these agreements and guarantees may be limited in terms of time and/or amount, and in some instances, we may have recourse against third parties for certain payments we made. Patent Indemn
Product Warranty Disclosure	Note 16Contingencies Product Warranty Liabilities In connection with our normal sales of equipment, including those under sales-type leases, we generally do not issue product warranties. Our arrangements typically involve a separate full service maintenance agreement with the customer. The agreements generally extend over a period equivalent to the lease term or the expected useful life under a cash sale. The service agreements involve the payment of fees in return for our performance of repairs and maintenance. As a consequence, we do not have any significant product warranty obligations including any obligations under customer satisfaction programs. In a few circumstances, particularly in certain cash sales, we may issue a limited product warranty if negotiated by the customer. We also issue warranties for certain of our lower-end products in the Office segment, where full service maintenance agreements are not available. In these instances, we record warranty obligations at the time of the sale. Aggregate product warranty liability expenses for the three years ended December31, 2009 were $34, $39 and $40, respectively. Total product warranty liabilities as of December31, 2009 and 2008 were $20 and $27, respectively.

Shareholders' Equity

Shareholders' Equity
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Shareholder's Equity	Note 17Shareholders Equity Preferred Stock As of December31, 2009, we had no preferred stock shares or preferred stock purchase rights outstanding. We are authorized to issue approximately 22million shares of cumulative preferred stock, $1.00 par value. In connection with the acquisition of ACS in February 2010 (see Note 3 Acquisitions for further information), we issued 300,000 shares of Convertible Preferred Stock with an aggregate liquidation preference of $300 to the holders of ACS Class B common stock. The Convertible Preferred Stock will pay quarterly cash dividends at a rate of 8 percent per year and will have a liquidation preference of $1,000 per share. Each share of Convertible Preferred Stock will be convertible at any time, at the option of the holder, into 89.8876 shares of common stock for a total of 26,966 thousand share (which reflects an initial conversion price of approximately $11.125 per share of common stock, which is a 25% premium over $8.90, which was the average closing price of Xerox common stock over the 7-trading day period ended on September 14, 2009, and the number used for calculating the conversion price in the ACS merger agreement), subject to customary anti-dilution adjustments. On or after the fifth anniversary of the issue date, we will have the right to cause, under certain circumstances, any or all of the Convertible Preferred Stock to be converted into shares of common stock at the then applicable conversion rate. The holders of Convertible Preferred Stock will also be able to convert upon a change in control at the applicable conversion rate plus an additional number of shares determined by reference to the price paid for our common stock upon a change in control. In addition, upon the occurrence of certain fundamental change events, including a future change in control of Xerox or if Xerox common stock ceases to be listed on a national securities exchange, the holders of Convertible Preferred Stock will have the right to require us to redeem any or all of the Convertible Preferred Stock in cash at a redemption price per share equal to the liquidation preference and any accrued and unpaid dividends to, but not including the redemption date. The Convertible Preferred Stock will be classified as temporary equity (i.e., apart from permanent equity) as a result of the contingent redemption feature. Common Stock We have 1.75 billion authorized shares of common stock, $1 par value. At December31, 2009, 79 million shares were reserved for issuance under our incentive compensation plans, 48 million shares were reserved for debt to equity exchanges and 2million shares were reserved for the conversion of convertible debt. In connection with the acquisition of ACS in February 2010 (see Note 3 Acquisitions for further information), we issued approximately 489,800 thousand shares of common stock to holders of ACS Class A and Class B common stock. Treasury Stock Our Board of Directors has authorized programs for repurchase of the Companys common stock. During the year ended December 31, 2009, we did not purchase any common stock and we have no immediate plans for further share repurchases.
Share-based Payments	Note 17Shareholders Equity Stock-Based Compensation We have a long-term incentive plan whereby eligible employees may be granted restricted stock units (RSUs), performance shares (PSs) and non-qualified stock options. We grant PSs and RSUs in order to continue to attract and retain employees and to better align employee interest with those of our shareholders. Each of these awards is subject to settlement with newly issued shares of our common stock. At December31, 2009 and 2008, 15 million shares were available for grant of awards. Stock-based compensation expense for the three years ended December 31, 2009 was as follows: 2009 2008 2007 Stock-based compensation expense, pre-tax $ 85 $ 85 $ 89 Stock-based compensation expense, net of tax 52 52 55 Restricted stock units:Compensation expense is based upon the grant date market price for most awards and a Monte Carlo simulation pricing model for a fiscal 2009 grant that included a market condition; the expense is recorded over the vesting period, which ranges from three to five years from the date of grant.A summary of the activity for RSUs as of December31, 2009, 2008 and 2007, and changes during the years then ended, is presented below (shares in thousands): 2009 2008 2007 Nonvested Restricted Stock Units Shares Weighted AverageGrant Date Fair Value Shares Weighted AverageGrant Date Fair Value Shares Weighted AverageGrant Date Fair Value Outstanding at January 1 14,037 $ 15.43 11,696 $ 16.78 8,635 $ 15.71 Granted 15,268 6.69 5,923 13.63 4,444 18.17 Vested (3,764 ) 15.17 (3,350 ) 16.92 (935 ) 13.65 Cancelled (414 ) 13.94 (232 ) 15.98 (448 ) 16.42 Outstanding at December 31 25,127 10.18 14,037 15.43 11,696 16.78 At December31, 2009, the aggregate intrinsic value of RSUs outstanding was $213. The total intrinsic valueand actual tax benefit realized for the tax deductions for vested RSUs for the three years ended December31, 2009 were as follows: Vested Restricted Stock Units 2009 2008 2007 Total intrinsic value of vested RSUs $ 19 $ 54 $ 16 Tax benefit realized for vested RSUs tax deductions 6 18 3 At December31, 2009, there was $129 of total unrecognized compensation cost related to nonvested RSUs, which is expected to be recognized ratably over a remaining weighted-average contractual term of 1.9 years. Performance shares:We grant officers and selected executives PSs that vest contingent upon meeting pre-determined Diluted Earnings per Share (EPS) and Core Cash Flow from Operations targets. These shares entitle the holder to one share of common stock, payable after a three-year period and the attainment of the stated goals. If the cumulative three-year actual results for EPS and Core Cash Flow from Operations exceed the stated targets, then the plan participants have the potential to earn addi

Earnings per Share

Earnings per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Earnings per Share	Note 18Earnings per Share The following table sets forth the computation of basic and diluted earnings per share of common stock for the three years ended December31, 2009 (shares in thousands): 2009 2008 2007 Basic Earnings per Share: Net income attributable to Xerox $ 485 $ 230 $ 1,135 Weighted average common shares outstanding 869,979 885,471 934,903 Basic Earnings per Share $ 0.56 $ 0.26 $ 1.21 Diluted Earnings per Share: Net income attributable to Xerox $ 485 $ 230 $ 1,135 Interest on Convertible securities, net 1 1 Adjusted net income available to common shareholders $ 486 $ 230 $ 1,136 Weighted average common shares outstanding 869,979 885,471 934,903 Common shares issuable with respect to: Stock options 462 3,885 8,650 Restricted stock and performance shares 7,087 6,186 7,396 Convertible securities 1,992 1,992 Adjusted weighted average shares outstanding 879,520 895,542 952,941 Diluted Earnings per Share $ 0.55 $ 0.26 $ 1.19 Dividends Declared per Common Share $ 0.17 $ 0.17 $ 0.0425 The 2009, 2008 and 2007 computation of diluted earnings per share did not include the effects of 39 million, 29 million and 23 million stock options, respectively, because their respective exercise prices were greater than the corresponding market value per share of our common stock. In addition, the common shares issuable with respect to convertible securities were not included in the 2008 computation of diluted EPS because to do so would have been anti-dilutive.

Subsequent Event

Subsequent Event
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Subsequent Events	Note 19Subsequent Events On January 20, 2010, we acquired Irish Business Systems (IBS) for approximately $31. This acquisition expands our reach into the small and mid-sized business market in Ireland. IBS has eight offices located throughout Ireland and is a managed print services provider and the largest independent supplier of digital imaging and printing solutions in Ireland. On February 5, 2010, we completed the acquisition of ACS. Refer to Note 3-Acquisitions, Note 11-Debt and Note 17-Shareholders Equity for further information regarding the acquisition and funding associated with it. On February 25, 2010, we provided notice of termination for convenience of the Amended and Restated Program Agreement dated as of October 27, 2005 (as amended to date, the Program Agreement) by and among General Electric Capital Corporation (GECC), Xerox, Xerox Lease Funding LLC, and Xerox Lease Equipment LLC. The Program Agreement will terminate effective no later than August 25, 2010. Termination of the Program Agreement will result in the termination of other agreements relating to our vendor finance relationship with GECC, including the Amended and Restated Loan Agreement dated as of October 21, 2002 (as amended to date the Loan Agreement) between Xerox Lease Funding LLC and GECC. As of December 31, 2009, approximately $2 was outstanding under the Loan Agreement and as of February 16, 2010 all amounts outstanding under the Loan Agreement had been repaid.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Information [Text Block]
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jun. 30, 2009
Entity [Text Block]
Entity Registrant Name	Xerox Corp
Entity Central Index Key	0000108772
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$5,631,647,939
Entity Common Stock, Shares Outstanding	869,381,330